Glocalization_Lesson 1_Int.A&Mkts

What is glocalization?

• It is an economic process of integration which has political, social and cultural aspects as well. It involves goods and services, and the economic resources of capital, technology and data.

• It is a strategy that involves the development and selling of products or services intended for the global market, but adapted to suit local culture and behavior.

• It means means doing business in many countries of the world, often limited to a certain region (e.g. Europe).

• It reflects the trend of firms and people of buying, producing and selling products and services in most countries and regions of the world.

Localization emphasizes product standardization. Globalization looks for flexible response to the customer's needs

• True

• False

Glocalization aims to encourage the acceptance of foreign products among local audiences.

• The company do not need local talent to gain local insights about operating a business and understanding local laws and regulations.

• Last step in running the strategy we find: understanding the market and local competition

• The process is not expensive neither resource-intensive.

• Yes, however it is unsuitable for all companies. It usually works best when companies have a decentralized management structure

One of the main Glocalization benefits are:

•         Encourage innovation in the economy of the target country

• Do not require large investment and resources

• Increase the chances of success in entering foreign markets

• It usually do not bring local market resistance

One of the main Glocalization disadvantages are:

•         Encourage innovation in the economy of the target country

• As those companies normally are bigger and have better resources than local companies, they have a greater chance to dominate the local market

• The allocation of resources is high, it needs to hire local people and do in-depth research on local markets and competition.

• It usually do not bring local market resistance

What is the effect of glocalization on foreign companies?

• It lowers the price and improves quality for the increase of competition

• They should apply a decentralized management structure

• They should disappear

What is the meaning of "Think globally, act locally"

What are typical barriers on transfer knowledge from one cultural context to another?

• Lack of personal relationships, absence of trust, cultural distance

• Having the same environment

• The standard operations and global technology

• The increased awareness and acceptance among local consumers

One key element in glocalization is knowledge management, i.e. continuous learning from experiences

• It means keep track of valuable capabilities used in one market, that could be used elsewhere = updating its knowledge

• It means finding global customer needs

• It is coordinating marketing activities

• It involves the firm’s commitment to coordinate its marketing activities across national boundaries

Explain the meaning of the figure